Controlling: Components of Organizational Control Systems
Controlling is the process of ensuring organizational objectives are achieved by measuring actual performance against targets. It involves measuring sales, production, worker attendance, safety records, and supplies used against targets in these areas. There are different types of control - feedback control anticipates problems, concurrent control detects variances during ongoing operations, and post-action control evaluates past activity to identify improvements. Key components of organizational control systems include the strategic plan, long-range financial plan, operating budget, performance appraisals, statistical reports, policies and procedures. A comprehensive internal audit aims to detect dysfunctions in the organization before they become large problems.
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Controlling: Components of Organizational Control Systems
Controlling is the process of ensuring organizational objectives are achieved by measuring actual performance against targets. It involves measuring sales, production, worker attendance, safety records, and supplies used against targets in these areas. There are different types of control - feedback control anticipates problems, concurrent control detects variances during ongoing operations, and post-action control evaluates past activity to identify improvements. Key components of organizational control systems include the strategic plan, long-range financial plan, operating budget, performance appraisals, statistical reports, policies and procedures. A comprehensive internal audit aims to detect dysfunctions in the organization before they become large problems.
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Controlling
1. Controlling - It is the process of
ascertaining whether organizational objectives have been achieved; if not, why not; and determining what activities should then be taken to achieve objectives better in the future. 2. Sales targets expressed in monetary or quantity terms 3. Production targets expressed in quality or quantity 4. Worker attendance expressed in terms of rate of absence 5. Safety record expressed in number of accidents for a given period 6. Supplies used expressed in quantity or monetary terms for a given period 7. Measuring Actual Performance - It is done so that when shortcomings occur, adjustments could be made. 8. Feedback Control - Type of control taken when management anticipates problems and prevents their occurrence. 9. Concurrent Control - Undertaken when operations are already ongoing and activities to detect variances are made. 10. Feedback Control - Done when information is gathered about a completed activity and evaluate steps for improvements are derived. 11. Components of Organizational Control Systems: Strategic Plan Long-range financial plan Operating budget Performance Appraisals Statistical reports Policies and procedures 12. Strategic Plan - Provides basic control mechanism for the organization. Dictates whether activities are set aside, modified or expanded when activities do not facilitate accomplishment of strategic goals. 13. Long Range Financial Plan - This recommends a direction for financial activities. If the goal does not appear to be where the firm is headed, the control mechanism should be made to work. 14. Operating Budget - This indicates the expenditures, revenues or profits planned for some future period regarding operations. The figures appearing in the budget are used as standard measurements for performance. 15. Performance Appraisals - This measures employee performance. It also provides employees with a guide on how to do their jobs better in the future. Also, it functions as effective checks on new policies and programs. 16. Statistical Reports - Contain data on various developments within the firm. (e.g. labor efficiency reports, quality control reports, sales reports, accident reports etc.) 17. Policies and procedures - The framework within which the objectives must be pursued. A plan that describes the exact series of actions to be taken in a given situation. 18. Identifying Control Problems - Recognizing the need for control is one thing, actually implementing it is another. The engineer manager must consider useful steps in controlling when operations become complex. 19. Executive Reality Check - Employees at the frontline often complain that management imposes certain requirements that are not realistic. 20. Comprehensive Internal Audit - Undertaken to determine the efficiency and effectivity of the activities of an organization. A small activity that is not done right may continue to be unnoticed until it snowballs into a full blown problem. - A comprehensive internal audit aims to detect dysfunctions on the organization before they bring bigger troubles to management.
21. General Checklist of symptoms of inadequate control - Used when comprehensive internal audit cannot be availed